Thousands of motorists are being advised to seek alternative auto insurance following the collapse of a provider. Premier Insurance Company Limited, based in Gibraltar, specialized in car and motorcycle coverage for UK clients before entering administration recently. Policies with the company will terminate on December 1, affecting approximately 16,000 individuals and small businesses.
The Financial Conduct Authority assures affected individuals will be contacted by brokers to assist in securing new policies. Premier Insurance ceased issuing new policies in January 2025, with Grant Thornton’s Freddie White and Bradley Chadwick appointed as joint administrators.
Customers will now be covered by the Financial Services Compensation Scheme (FSCS) as Premier Insurance is no longer settling claims. The FSCS safeguards consumers when financial firms fail to meet claim obligations.
Sarah Marin, FSCS’s chief customer officer, stated that efforts are underway to protect eligible UK policyholders and small businesses. Car insurance is mandatory in the UK and must be renewed annually, with options including third party, third party fire and theft, and fully comprehensive coverage. Utilizing comparison websites like Compare the Market, Go Compare, and Confused.com can help find competitive rates. The ideal time to renew insurance, as per MoneySavingExpert.com, is about 20 to 26 days before the current policy ends.
Some major providers like Direct Line may not be listed on comparison sites, so reaching out directly is advised. Exploring cashback opportunities on platforms like Topcashback and Quidco when switching policies can also yield benefits.